April 9, 2013 - The UK's biggest banks will be charged around £600 million ($915 million) every year for the regulation of the country's financial system, it has been reported.

Insiders with knowledge of the matter have told Sky News that the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) - who took responsibility for overseeing activity in the City last week - are planning to hike major financiers' contribution to this area by 20 per cent.

The details of the government's new "twin peaks" system of supervision will be revealed in consultation papers that will be published by the two new watchdogs in the near future.

One source said: "The PRA's remit is to focus on the major risks within the financial system, and the biggest banks are at the centre of that focus."

Last year, banks paid a total of £489.1 million to the Financial Services Authority, the predecessor to the FCA and PRA.